Gov. Mike Dunleavy’s transition report to the Trump administration accuses the Biden administration of carrying out a four-year assault on Alaska’s economy and that the Trump administration needs to repair the damage. Somehow in the equation for what constitutes creating economic opportunity and being pro-Alaska, the massive Willow project doesn’t count. Nor does the $10.1 billion in public investments in clean energy, infrastructure, and manufacturing. Nor does aiding Alaska’s visitor industry in a time of post-pandemic need. What about banning imports of Russian seafood? Even Sen. Lisa Murkowski praised this executive action, saying, “I think that this is going to be very, very welcomed news for the seafood industry at a time when they really need it.”
Turns out, none of these pro-Alaska actions enter Dunleavy’s economic equation. According to the Alaska federal transition plan, what matters most is opening up the Arctic National Wildlife Refuge, promoting old-growth logging in the Tongass, permitting the Ambler Road and approving the controversial King Cove Road.
Additionally, the transition report overlooks key facts…conveniently. There is no mention that not even one major oil company bid when ANWR leases came open under the Trump administration. In her Dec. 18 article in the Alaska Beacon, reporter Yereth Rosen noted that the Biden administration has already resurrected the land trade for a road to be built in the Izembek National Wildlife. Rosen also noted, “Alaska’s economy grew during Biden’s term and shrank during the first Trump term, as measured by gross domestic product.”
This economic growth happened because the Biden Administration started addressing Alaska’s economic needs early. In May of 2021, President Biden signed the Alaska Tourism Restoration Act, a necessary step for getting some cruise ships to return to Southeast one year after the pandemic. Then came the Inflation Reduction Act with major investments in 1) infrastructure — for example, $289 million for the Alaska Marine Highway; 2) renewable energy, including $120 million for Solar for All; and 3) energy efficiency, such as $40 million for Southeast Alaska heat pumps. According to the White House fact sheet, Alaska’s economy under the Biden administration added a total 31,700 new jobs and nearly $8 million in private sector investments. Clearly, this is a far cry from the Biden administration imposing a “four-year assault” on Alaska’s economy.
Only in Alaska could the myth of ANWR and old-growth logging so easily wipe out these positive economic actions and realities.
With the 12th year of population outmigration, Alaska’s economic woes are much bigger than not opening up ANWR or building a 200-mile road to a foreign-owned mining venture. According to Dan Robinson, research chief at the Alaska Department of Labor and Workforce Development, 12 years of sustained outmigration, “is not normal for us. It hasn’t happened before.” At a University of Alaska Anchorage conference focused on outmigration, Mr. Robinson noted that when the college-age Alaskans leave the state to attend school in the Lower 48, it results in less economic vitality. “It’s not a healthy sign,” he said.
The factors related to sustained outmigration have nothing to do with remote roads or mega resource-development projects. As noted by publisher Larry Persily, “the factors [for outmigration] are inadequate state support for K-12 schools and the university system, lack of available housing, a shortage of child care and better economic opportunities elsewhere.”
While Gov. Dunleavy began last year to address the outstanding need for affordable child care, his sustained cuts to education funding and to the university, have only exacerbated the problem of outmigration. So, it’s no wonder there is a lack of leadership on this economic woe.
The other pressing economic matter facing Alaska is the lack of a long-term fiscal plan. Gov. Dunleavy recently introduced a Permanent Fund dividend-inflated, $1.5 billion-deficit budget to the Legislature. Even though he knows the state cannot afford $3,800 dividends without drawing down its remaining reserves, he says the Legislature needs to do something about it. So here too an important economic matter gets sidelined.
With the audition for a Cabinet post over, Gov. Dunleavy could lead on addressing outmigration or a long-term fiscal plan. Since he can’t run for reelection, now is an opportune time for leadership.
Apparently it’s easier to duck and then rail against the Biden administration. And this is what has me worried still. Judging by the condemning, misdirected tone of the Alaska transition plan, I worry that Gov. Dunleavy will fall in line if President Trump seeks to rollback Inflation Reduction Act funds for clean energy and energy efficiency; that he will not defend these expenditures:
• $62.4 million for the Greenhouse Gas Reduction Fund – Solar for All Program;
• $53.9 million for the Home Electrification and Appliance Rebates Program for Tribes;
• $37.4 million for the high-efficiency electric home rebate program; and
• $9.9 million for the Tanana Chiefs Conference Renewable Energy Empowerment Initiative.
Since the governor looks to the Legislature to provide leadership on critical matters, it makes sense to alert the Legislature. Senate President Gary Stevens and House Speaker Bryce Edgmon have an opportunity to put these projects on their leadership radar and help keep the economic boost going to Alaska’s communities.
• Kate Troll is a former member of the Ketchikan and Juneau borough assemblies. She has more than 22 years of experience in fisheries, coastal management and climate and energy policy. She is the former executive director of United Fishermen of Alaska and Alaska Conservation Alliance. She is also the author of two books on environmental matters. This article originally appeared online at alaskabeacon.com. Alaska Beacon, an affiliate of States Newsroom, is an independent, nonpartisan news organization focused on connecting Alaskans to their state government.
